The Obama Admininstration will announce on Tuesday that it is loaning money to Tesla Motors, Ford and Nissan to help them develop electric vehicles. The loans are part of a $25 billion Department of Energy program to increase the production of fuel-efficient automobiles.
Energy Secretary Steven Chu is expected to announce the loans Tuesday morning at Ford's headquarters in Detroit, the Detroit Free Press and Bloomberg reported, citing "people familiar with the decision." It was not immediately clear how much each company would receive, but the Obama Administration has said it will award $10 billion this year and the remaining funds next year.
Ford is expected to get the lion's share of the first $10 billion, the Free Press reports. The automaker had sought $11 billion, and under the rules, the feds must give priority to automakers that will retool factories that are at least 20 years old. Ford has announced it will have an EV on the road by 2011; the car could be based on the Fusion or Focus.
Tesla spokeswoman Rachel Konrad could not confirm the reports but said "Tesla remains very confident" it will receive a loan.
The company has been banking on the federal loan to develop and build the Model S sedan (pictured) it unveiled in March. The Silicon Valley startup had sought $350 million to retrofit a factory to build the car, which company CEO Elon Musk says will be production by the end of 2011. It also sought $100 million for a battery and electric drivetrain factory.
Nissan reportedly plans to use the money to produce electric vehicles in Smryna, Tenn., where Nissan of North America is based.
Seventy-five companies sought $38 billion in loans. General Motors and Chrysler, which both have EV programs, do not qualify for the program because of their bankruptcies.
Photo: Jim Merithew / wired.com
